Comments by "Grim Affiliations" (@grimaffiliations3671) on "China’s Catastrophic Economic Crisis - Is The Bubble About To Burst?" video.

money isn't drying up in either country because both have fiat currencies
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@shellroc21 You can have financial turmoil without running out of money. And no, it's not drying up due to debt, sovereign debt isn't the same as private debt
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You predicted we'd have the best recovery in the OECD? That we'd stay below 4% unemployment for the longest stretch in history? That we'd get back to pre-GFC trajectories in a host of areas? That manufacturing would be coming back to the states at this pace?
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it's not debt. That 32 trillion is just dollars spent by the government that haven't been used to pay taxes yet
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@yerri5567 obviously the government collects taxes. Im saying thats all the national debt is, money that hasn't yet been used to pay taxes. When the government services that "debt", people will start spending it and inevitably use it to pay taxes. The national debt is nothing more than our stockpile of US treasuries
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@yerri5567 no, i didn't say receive because the government doesn't pay taxes to itself, people do. Once people receive that interest income, they'll use it to pay taxes. Yes, you're describing debt in the traditional sense, and that's different from the national debt. The government borrows only from itself, it doesn't need the faith or financing of outside entities. Our stockpile of US treasuries, what you call debt, is just a different kind of dollar that the government issues. Dollars and bonds come from the same printer and are perfectly interchangeable. They exist in a harmless closed loop, when the government goes into "debt" they just turn dollars into bonds, and when they pay it off, they simply turn those bonds back into dollars
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@yerri5567 The government is the source of all dollars, including the dollars people use to pay taxes. So dollars tied up in US treasuries is money that has not yet been used to pay taxes by the recipients of government spending. Yes, this does not apply to the US alone, but only a handful of nations in the world have the monetary sovereignty. National debt differs from regular debt in all of these nations
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@yerri5567 money does sit around, in the form of treasuries
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@yerri5567 what are you talking about? money in treasuries are the investment.
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@yerri5567 Yes, money doesn't sit around. Hence why it is invested into treasuries
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@yerri5567 I'm saying the way money sits around, is when it is invested into treasuries. Dollars don't sir around, hence why they are parked in securities. Treasuries are the investment. You're saying money doesn't sit around even when it's invested into securities, which doesn't make sense
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@yerri5567 that's nonsense. The government doesn't reinvest that money into anything else. And i'm not the one whose adamant on this topic, it's kind of a tangent we landed on after you agreed with me on everything else
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@yerri5567 The government has no need to re-invest money tied up in treasuries. When it wants to spend, it just creates new money. And no, that definition is wrong. The US government doesn't need to be lent it's own currency. The don't sell treasuries because they need financing, they sold treasuries historically as a way of controlling interest rates. But since 2008, they've moved to a system where the fed simply declarers interest rates, so selling treasuries at all are no loner necessary. It's just something they do out of habit
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@yerri5567 There's nothing more conventional that a description of how things actually work. Securities were initially sold to offset government deficits, thereby draining the banks of excess reserves as a way of keeping interest rates at the overnight target. But since 2008, they've moved to a system of simply declaring new interest rates
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@Amor1990 The prime age worker participation rate is at record numbers right now. Also We were at 3.5% for a long time under biden too, and actually beat Trump's record by hitting 3.4% at one point
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